company manufactures desks and computer tables at plants in Texas and Louisiana. At the Texas plant, production costs are $12 for each desk and $20 for each computer table, and the plant can produce at most 120 units per day. At the Louisiana plant, costs are $14 for each desk and $19 per computer table, and the plant can produce at most 150 units per day. The company gets a rush order for 130 desks and 130 computer tables at a time when the Texas plant is further limited by the fact that the number of computer tables it produces must be at least 10 more than the number of desks. How should production be scheduled at each location in order to fill the order at minimum cost? What is the minimum cost?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
company manufactures desks and computer tables at plants in Texas and Louisiana. At the Texas plant, production costs are $12 for each desk and $20 for each computer table, and the plant can produce at most 120 units per day. At the Louisiana plant, costs are $14 for each desk and $19 per computer table, and the plant can produce at most 150 units per day. The company gets a rush order for 130 desks and 130 computer tables at a time when the Texas plant is further limited by the fact that the number of computer tables it produces must be at least 10 more than the number of desks. How should production be scheduled at each location in order to fill the order at minimum cost? What is the minimum cost?
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